711.522/54: Telegram

The Secretary of State to the Ambassador in Spain (Moore)

39. Your 57, June 25, 5 p.m.

(1) Share your view that application for modus vivendi should be made at once.

(2) You will inform Minister of State that discussions between the two Governments have disclosed the existence of certain facts and circumstances relating to commercial relations, especially the following. The present regime of mutual most-favored-nation treatment has proved advantageous to both countries, multiplying interchange of their respective products, and encouraging growth of cordiality between the two countries to the profound gratification of their respective governments and peoples.

The negotiation of the proposed comprehensive treaty of amity and commerce doubtless involves prolonged consideration by both Governments. Any treaty negotiated between them must, in order to become effective, be ratified, in the case of the United States, by and with the advice and consent of the Senate, and in the case of Spain through the approval of the Cortes. The Senate will not convene in regular session until December 1923 and its approval of a treaty with Spain necessarily will be subsequent thereto.

In view of the foregoing considerations it seems to be desirable for the United States and Spain to assure each other that pending the time when a new comprehensive treaty of amity and commerce can be concluded and brought into operation the favorable treatment which each country now accords the commerce of the other will be continued without interruption.

(3) Inquire of the Minister of State whether his Government would be prepared to effect an exchange of notes with the Government of the United States giving expression to such an assurance. [Page 854]If this proposal be received with favor you might suggest that a basis for such an arrangement could be found in paragraph numbered (Roman) II of the commercial agreement of August 190611 and the second paragraph of the notes exchanged in December 1906.12 The Department suggests the following as a draft for negotiation:

“The Government of the United States of America and the Government of Spain agree that pending the time when a new treaty of friendship, commerce and navigation shall be concluded and brought into operation between the two countries, the natural, agricultural, and manufactured products of Spain will pay on importation into the United States, and the natural, agricultural, and manufactured products of the United States will pay on importation into Spain the lowest rates of duty in force at the time of such importation on articles of the same kind when imported from any other country, exceptions being made of the special advantages conceded by the United States to Cuba and by Spain to Portugal.”

Hughes